1. Do I need 2 servers to set up name servers like ns1.mydomain.com * ns2.mydomain.com?

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Some registrars require you to have nameservers on different IP addresses, and the sense of having at least two nameservers is redundancy in case of a problem, so you *should' have two nameservers. But technically it's possible to use just one.

The next two questions are about the internal ISPConfig database user and password.It is recommended to accept the defaults which are 'ispconfig' as username and a random password.
If you use a different password, use only numbers and chars for the password.

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The network configuration is disabled, so the nameserver and Ip settings do not matter but you can replace the nameserver IP addresses there if you like. The nameservers mentioned on this page are the servers that your server uses to resolve external domains and not the nameservers of your domain.

Refer to post # 3 of this thread, I am trying to set up my final Multi-setup to go live but I am not able to install ISpconfig3 on Slave server(my set up is on 2 servers, I have very carefully followed all the installation steps,

I get an error "Unable to connect to mysql server" while on slave server on ispconfig installation

I made only one change on Master Installation is of ISpconfig default port 8080 to 50